MANILA—A sudden leap in US treasury yields in reaction to the tax cut plan announced by US President Donald Trump weakened share prices at the Philippine Stocks Exchange (PSE) Friday, but the peso remained flat.
The local currency finished the week at 49.86 from Thursday’s 49.87.
A trader said the local unit recovered in the afternoon trade after it was pummeled in the morning session.
This after the US dollar strengthened as a result of the “big league tax reforms”, which Trump said would be released in a few weeks in line with his program to improve aviation infrastructure.
The trader said foreign selling in the local equities market also negatively affected the peso during the day.
The peso opened the day at 49.95, a little weaker from the previous session’s 49.90.
It traded between its closing rate and 49.96 bringing the day’s average to 49.91.
Volume of trade reached USD422.1 million, higher than the USD353 million Thursday.
The currency pair is seen to trade between 49.60 and 49.90 next week.
Meanwhile, the Philippine Stock Exchange index (PSEi) lost 0.24 percent, or 17.45 points, to 7,235.21 points.
All Shares also ended the week on the red with 0.31 percent, or 13.57 points, contraction to 4,380.51 points.
Most of the sectoral indices finished with gains with Industrial leading with 0.71 percent increase followed by Services, 0.34 percent; Property, 0.21 percent; and Financials, 0.12 percent.
Holding Firms and Mining and Oil, meanwhile, declined by 1.27 percent and 0.42 percent, respectively.
Volume of transactions involved 5.75 billion shares amounting to Php 7.24 billion.
Losers led gainers at 114 to 81 while 40 shares were unchanged.